The permitting decision was another example of New York putting the brakes on a cryptocurrency bonanza that has alarmed environmentalists. It also comes at a time when cryptocurrency prices have plunged, wiping out fortunes, fuelling skepticism and sparking calls for tighter scrutiny.
In rejecting the renewals, the state Department of Environmental Conservation said the plant’s conversion to a cryptocurrency mining operation meant it was creating a significant new demand for energy “for a wholly new purpose unrelated to its original permit.” “It is absurd for anyone to look at these facts and rationally claim that renewing this specific permit – for a facility that makes up a small fraction of the state’s electricity generation capacity – would impede New York’s long term climate goals. It simply would not,” the company said.
Greenidge is not affected by the first-of-its-kind moratorium measure, which covers new applications.